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Ministry of Trade and Industry
Feature Articles

Drivers Of Labour Productivity Growth Trends In Singapore: An Update Using Value-Added Per Actual Hour Worked

17 February 2017

This article has been migrated from an earlier version of the site and may display formatting inconsistencies.

This article examines the drivers of Singapore’s labour productivity growth in recent years.

First, a shift-share analysis indicates that a shift in hours worked towards less productive sectors, including the Construction and Food Services sectors, negatively contributed to Singapore’s labour productivity growth from 2009 to 2016. However, this effect was outweighed by productivity improvements in most sectors, particularly the outward-oriented sectors.

Second, using growth accounting analysis, we find that productivity growth from 2009 to 2015 was supported by improvements in both capital intensity and labour quality. Similar trends were observed for the period from 2010 to 2015.

The views expressed in this paper are solely those of the authors and do not necessarily reflect those of the Ministry of Trade and Industry or the Government of Singapore.

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